Facial-recognition startup Clearview AI is offering a collective 23% stake in the company to individuals whose faces are in its database, as part of a class-action settlement.
This offer comes after a nationwide ban in May 2022, which prohibited Clearview from selling database access to most private entities and individuals. The ban stemmed from a lawsuit by the American Civil Liberties Union and other groups, claiming the company violated Illinois privacy laws by collecting biometric data without consent.
Clearview’s database contains over 10 billion photos scraped from news sites and social media, likely including images of a vast number of people. The company’s offer, contingent on federal court approval, could be valued at over $50 million based on its current valuation. However, the value of individual stakes is expected to be modest, given the vast number of potential claimants.
This equity distribution is seen as a lifeline for Clearview, which faces possible bankruptcy without the settlement. The case underscores ongoing concerns about privacy and the unregulated use of facial recognition technology, spotlighting the need for stronger legal frameworks to protect individuals’ biometric data.
